CHAPTER 1033. GRAPELAND HOSPITAL DISTRICT OF HOUSTON COUNTY, TEXAS

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 3. HEALTH

SUBTITLE A. HOSPITAL DISTRICTS

CHAPTER 1033. GRAPELAND HOSPITAL DISTRICT

OF HOUSTON COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1033.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "Director" means a member of the board.

(3) "District" means the Grapeland Hospital District of Houston

County, Texas.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.002. AUTHORITY FOR CREATION. The district is created

under the authority of Section 9, Article IX, Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.003. DISTRICT TERRITORY. The boundaries of the

district are coextensive with the boundaries of the Grapeland

Independent School District as those boundaries existed on May

26, 1971.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.004. DISTRICT SUPPORT AND MAINTENANCE NOT STATE

OBLIGATION. The support and maintenance of the district's

hospital system and any indebtedness incurred by the district

under this chapter may not become a charge against or obligation

of this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.005. RESTRICTION ON STATE FINANCIAL ASSISTANCE. The

legislature may not make a direct appropriation for the

construction, maintenance, or improvement of a district facility.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 1033.051. BOARD ELECTION; TERM. (a) The board consists of

seven directors elected from the district at large.

(b) Directors serve staggered two-year terms unless four-year

terms are established under Section 285.081, Health and Safety

Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.052. QUALIFICATIONS FOR OFFICE. To qualify for

election to the board, a person must:

(1) be at least 18 years of age;

(2) have been a district resident for at least two years; and

(3) be a qualified property taxpaying voter of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.053. BOND; RECORD OF BOND AND OATH OR AFFIRMATION OF

OFFICE. (a) Each director shall qualify for office by executing

a good and sufficient commercial bond for $1,000 that is:

(1) payable to the district; and

(2) conditioned on the faithful performance of the director's

duties.

(b) The district shall pay for a director's bond.

(c) Each director's bond and constitutional oath or affirmation

of office shall be deposited with the district's depository for

safekeeping.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.015, eff. September 1, 2009.

Sec. 1033.054. BOARD VACANCY. If a vacancy occurs in the office

of director, a majority of the directors shall appoint a director

for the unexpired term.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.055. OFFICERS. The board shall elect from among its

members a president, a secretary, and a treasurer at the first

meeting after each directors' election.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.056. COMPENSATION; EXPENSES. A director serves

without compensation but is entitled to reimbursement for

necessary expenses incurred in the performance of official

duties.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.057. DISTRICT ADMINISTRATOR. (a) The board may

employ a district administrator to manage the operations of the

hospital system.

(b) The district administrator may employ necessary personnel to

perform the services provided by the hospital system.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.058. EMPLOYEES; APPOINTMENT AND DISMISSAL OF STAFF.

(a) The board may appoint to or dismiss from the staff any

doctors the board considers necessary for the efficient operation

of the district and make temporary appointments as necessary.

(b) The board may employ an attorney, general manager,

bookkeeper, architect, and other employees necessary for the

efficient operation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.059. MAINTENANCE OF RECORDS; PUBLIC INSPECTION. The

board shall:

(1) maintain all district records, including books, accounts,

notices, minutes, and other matters of the district and the

district's operation at the district office; and

(2) make those records available for public inspection at

reasonable times.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 1033.101. DISTRICT RESPONSIBILITY. The district shall

provide all necessary medical and hospital care for the

district's needy inhabitants.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.102. RESTRICTION ON POLITICAL SUBDIVISION TAXATION AND

DEBT. A political subdivision of this state, other than the

district, may not impose a tax or issue bonds or other

obligations to provide hospital service or medical care in the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.103. MANAGEMENT AND CONTROL OF DISTRICT. The board

has full power to manage and control the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.104. HOSPITAL SYSTEM. The district has the

responsibility to establish a hospital or hospital system within

its boundaries to provide hospital and medical care to the

district's residents.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.105. RULES. (a) The board shall adopt rules for the

efficient operation of the district, including district

facilities.

(b) The board shall:

(1) publish the rules in book form; and

(2) provide copies to interested persons on request at district

expense.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.106. PURCHASING AND ACCOUNTING PROCEDURES. The board

may prescribe the method of making purchases and expenditures and

the manner of accounting and control used by the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.107. EMINENT DOMAIN. (a) The district may exercise

the power of eminent domain to acquire a fee simple or other

interest in real, personal, or mixed property located in district

territory if the interest is necessary or convenient for the

district to exercise a power or duty conferred on the district by

this chapter.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, except that the

district is not required to deposit in the trial court money or a

bond as provided by Section 21.021(a), Property Code.

(c) In a condemnation proceeding, the district is not required

to:

(1) pay in advance or provide a bond or other security for costs

in the trial court; or

(2) provide a bond for costs or a supersedeas bond on an appeal

or writ of error.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.108. GIFTS AND ENDOWMENTS. The board may accept for

the district a gift or endowment to be held in trust and

administered by the board under the directions, limitations, or

other provisions prescribed in writing by the donor that are not

inconsistent with the proper management of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.109. CONTRACTS WITH POLITICAL SUBDIVISIONS FOR

HOSPITAL CARE. The board may contract with a political

subdivision to provide hospital care for needy persons who reside

outside the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.110. PAYMENT FOR TREATMENT; PROCEDURES. (a) A person

who resides in the district is entitled to receive necessary

medical and hospital care from the district regardless of whether

the person has the ability to pay for the care and may apply to

receive this care without cost.

(b) The board or the district administrator shall employ a

person to investigate the ability of the patient and any relative

who is liable for the patient's support to pay for the medical

and hospital care received by the patient.

(c) If the investigator determines that the patient or relative

legally liable for the patient's support cannot pay all or part

of the costs of the patient's care, the expense of the care

becomes a charge against the district.

(d) If the patient or a relative of the patient legally liable

for the patient's support can pay for all or part of the costs of

the patient's care, the board shall order the patient or relative

to pay to the treasurer each week an amount specified in the

order. The amount must be proportionate to the person's ability

to pay.

(e) The district may collect the amount from the patient's

estate, or from any relative who is liable for the patient's

support, in the manner provided by law for the collection of

expenses of the last illness of a deceased person.

(f) If there is a dispute as to the ability to pay, or doubt in

the mind of the investigator, the board shall hold a hearing and,

after calling witnesses, shall:

(1) determine the question; and

(2) make the proper order based on the board's findings.

(g) A party to the hearing who is not satisfied with the result

of the order may appeal to the district court. The appeal is de

novo.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 1033.151. BUDGET. The board shall prepare a budget that

includes:

(1) proposed expenditures and disbursements;

(2) estimated receipts and collections for the next fiscal year;

and

(3) the amount of taxes required to be imposed to meet the

proposed budget.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.152. PROPOSED BUDGET; NOTICE AND HEARING. (a) The

board shall hold a public hearing on the proposed budget.

(b) Notice of the hearing must be published at least once in a

newspaper of general circulation in the district not later than

the 11th day before the date of the hearing.

(c) Any person is entitled to:

(1) appear at the hearing; and

(2) be heard regarding any item in the proposed budget.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.153. FISCAL YEAR. The district's fiscal year is from

October 1 to September 30.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.154. ANNUAL AUDIT. (a) The board annually shall

require an independent audit of the district's books and records.

(b) Not later than December 1 of each year, the board shall file

a copy of the audit with:

(1) the comptroller; and

(2) the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.155. DEPOSITORY. (a) The board by resolution shall

designate a bank in Houston County as the district's depository.

A designated bank serves for two years and until a successor is

designated.

(b) All district money shall be deposited in the depository and

secured in the manner provided for securing county funds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER E. BONDS

Sec. 1033.201. BONDS. The district may issue bonds to:

(1) purchase, construct, acquire, repair, or renovate buildings

or improvements; and

(2) equip buildings for hospital purposes.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.202. TAX TO PAY BONDS. The board may issue bonds

under Section 1033.201 only if the board imposes an ad valorem

tax at a rate sufficient to create an interest and sinking fund

to pay the principal of and interest on the bonds as the bonds

mature.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.203. BOND ELECTION. (a) The board may issue bonds

under Section 1033.201 only if the bonds are authorized by a

majority of district voters voting in an election held for that

purpose. The total face value of the bonds may not exceed the

amount specified in the election order.

(b) The board may order a bond election at any time.

(c) The order calling an election must include:

(1) the time of the election;

(2) the location of the polling places;

(3) the form of the ballots;

(4) the presiding judge for each polling place;

(5) the purpose of the bond issuance;

(6) the amount of the bonds to be authorized;

(7) the maximum interest rate of the bonds; and

(8) the maximum maturity of the bonds.

(d) A substantial copy of the election order shall be published

in a newspaper of general circulation in the district once a week

for two consecutive weeks before the date of the election. The

first notice must be published not later than the 15th day before

the date of the election.

(e) A copy of the election results must be filed with the county

clerk and become a public record.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.204. MATURITY OF BONDS. District bonds must mature

not later than 40 years after the date of issuance.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.205. EXECUTION OF BONDS. (a) The board president

shall execute the district's bonds in the district's name.

(b) The board secretary shall countersign the bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER F. TAXES

Sec. 1033.251. IMPOSITION OF AD VALOREM TAX. (a) The board

shall impose a tax on all property in the district subject to

district taxation.

(b) The tax may be used only to:

(1) pay the interest on and create a sinking fund for bonds

issued under this chapter;

(2) provide for the operation and maintenance of the district

and the hospital system;

(3) make improvements and additions to the hospital system; and

(4) acquire sites for additions to the hospital system.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.252. TAX RATE. The board may impose the tax at a rate

not to exceed 75 cents on each $100 valuation of all taxable

property in the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.253. TAX ASSESSOR AND COLLECTOR. The tax

assessor-collector of Houston County shall collect taxes for the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

SUBCHAPTER G. DISSOLUTION

Sec. 1033.301. DISSOLUTION; ELECTION. (a) The district may be

dissolved as provided by this subchapter.

(b) The board may order an election on the question of

dissolving the district and transferring the district's assets

and obligations to a governmental entity in Houston County as

specified in the election order.

(c) The board shall order an election if the board receives a

petition requesting an election that is signed by at least 20

percent of the registered voters in the district.

(d) The order calling the election must designate the

governmental entity in Houston County to which the district's

assets and obligations will be transferred.

(e) Section 41.001(a), Election Code, does not apply to an

election ordered under this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.302. BALLOT. The ballot for an election under this

subchapter must be printed to permit voting for or against the

proposition: "The dissolution of the Grapeland Hospital District

and the transfer of the existing district assets to and the

assumption of debts and bond obligations by ________ (name of

governmental entity as specified in the election order)."

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.303. ELECTION RESULTS. (a) If a majority of the

votes in an election under this subchapter favor dissolution and

transfer of the district's assets and obligations, the board

shall:

(1) declare that the district is dissolved; and

(2) transfer the district's assets and obligations to a

governmental entity as provided by Section 1033.304.

(b) If a majority of the votes in the election do not favor

dissolution and transfer of the district's assets and

obligations, the board shall continue to administer the district

and another election on the question of dissolution may not be

held before the first anniversary of the date of the most recent

election to dissolve the district and transfer the district's

assets and obligations.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.

Sec. 1033.304. TRANSFER OF DISTRICT ASSETS. (a) If a majority

of the votes in the election favor dissolution and transfer of

the district's assets and obligations, the board shall transfer

to the governmental entity specified in the election order the

land, buildings, improvements, equipment, and other assets that

belong to the district.

(b) The governmental entity assumes all debts and obligations of

the district at the time of the transfer.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.02, eff. April 1, 2009.